Hardware Market vs User Market vs Enterprise Market

Ok. Just a quick thought or reminder.

Hardware Market:

Bill Gates and Steve Jobs are considered 'the pioneers' and they are both the first few who became billionaires out of computer.

So, their business strategy for hardware market is proven; that is to sell software by license per hardware basis.

Therefore, if you are selling with this method, make sure you sell new license every time user changes hardware. In other words, make sure you markup your hardware prices for software.

User Market

I call this 'user market' because it refers to general users at large, irrespective of home, SME or enterprise.

For instance, a CEO of a public listed company can belong to either enterprise or user market.

In order to penetrate to these users, Google has proven that the web and free services are the way. As well as other heroes like Facebook, hotmail, Yahoo and etc.

So, to reach general users at large, your solution has to be web based.

It is the way now, users feel more comfortable to consult the web before calling up real consultants(human) for just any problems that they are facing. In other words, one day, students will prefer to check the Internet than going for tuition. Well of course provided that there are some solid contents to cater for such needs.

The cloud computing trend is a good opportunity to break through.

The only problem is how you going to make money ?

Google makes it through advertisement and so are most of them.

Software-as-a-Service(SaaS) is also a workable model.

Enterprise Market

Enteprise means big companies.

The enterprise can be combination of both.

The only problem is that enterprise market is driven by ICT adoption trends.

The current top 3 trends for ICT adoptions in Malaysia are:
  • Cyber Security
  • Cloud Computing
  • Virtualization

Most entrepreneurs will target the 'user market' because not many are capable of developing hardware as well as having the patience to wait for their innovations to be part of ICT adoption trends.

Trends are usually created and evangelized by the big guys like IBM, HP, Oracle and etc (those in the enterprise market). And it will usually take a few years to ripe.

So, the web space is expected to see a lot of competitions in coming months, particularly on SaaS offerings.

Refer more for trends.


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